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Basic Question 9 of 30

The owner of a large pet store chain in the United States wants to open a store in a new city. He is interested in the number of households in this city with pets. The owner randomly surveys 800 of the city's households, which shows that 82% of the 800 households have pets.

Does "82% of the 800 households have pets" describe a statistic or a parameter, and what conclusion might be drawn from the survey using inferential statistics?

A. parameter; Opening a pet store in the new city is not a good idea.
B. parameter; Opening a pet store in the new city is a good idea.
C. statistic; Opening a pet store in the new city is a good idea.
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User Contributed Comments 8

User Comment
cbb1 Statistic relates to a sample; parameter relates to a population
Carter You got it.
Bibhu Good answer
cp24 p - p ; s - s
vivacita so in this case, what could be the parameter?
mynotes Getting parameter value is costly, that's why owner selected the random sample of size 800.

However to your answer: (e.g.) 82% of all households in a new city have dogs.
2014 Parameter is computed from sample.

Statistcis means analysis and interpretation of information for decision making. 82% is analysis used for making decision
thevinu Question says he's interested to know how many pet owners are there in the city (Population) and then decides to survey only 800 of the people in the city (Sample). Easy way to remember is PP & SS; Population Parameter, Sample Statistic.
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

compare and contrast simple random, stratified random, cluster, convenience, and judgmental sampling and their implications for sampling error in an investment problem

CFA® 2025 Level I Curriculum, Volume 1, Module 7.